Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: sonaa on September 10, 2024, 06:54:45 AM
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Inflation in seigniorage currency poses a serious risk. It is the profit made by the government from issuing currency, which is calculated as the difference between the cost of producing the money and its face value. Especially when it is misused. The risk increases when, historically, seigniorage often leads to inflation, i.e., hyperinflation, and in extreme cases, hyperinflation. In today's global economy, with expanding money supply and increasing debt, these risks are ever-present. Although these risks remain, Bitcoin offers a promising alternative, immune to inflationary pressures due to its decentralized and fixed-supply nature. Bitcoin stays where it is and doesn't get that much inflation. So Bitcoin can create the future of money.
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Inflation is a general world issue. The value of money all over the world continues to drop down continuously and it still doesn't seem to be stopping anytime soon.a long time ago i did some research about economics and money including what causes inflation. Well to start with , I am personally of the opinion based on my understanding so far that Paper money or rather cash is one of the vi factors promoting inflation.
The simple reason why everyone simply talks about investments every now and then is because they are all trying to prevent the effects of inflation from hitting them because it leaves everyone in a loss. Funds have to be put up as investments overtime to make sure that it gradually appreciates in value to prevent the effects of inflation.
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Yes that is right when governments print too much money it can cause big problems like inflation. This has happened before and can make economy unstable. Today with more debt and money being printed these problems are even more likely. Bitcoin is promising solution because it is not controlled by governments.
This means it ca not be inflated like traditional money. While Bitcoin has its own risks it has potential to create more stable financial future. As world deals with economic uncertainty Bitcoin unique features make it more viable option for the future of money.
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I believe that inflation is something that no one can eventually stop...and even if the government will resort to price control there can come a time when inflation will eventually roar and soar. There are measures to control inflation - some are effective and some are not - but its effects will eventually come to all of us, the people. There has never been an effective economic system devised by man that can kill inflation...this is just like death and taxes, there is no way to eventually avoid them. Now, with the coming of Bitcoin, we are presented with an alternative form of currency where its total supply is already fixed and no government power can increase it just like what many central banks are doing with the fiat money: printing more money which resulted to more inflation. With the fiat money, there is no way we can increase its value per se as inflation is slowly eating its value over time...on the other hand with BTC there is an opportunity to experience deflationary value. Naturally, this is the way of viewing things straight from A to B but we know that in reality there will always be ups and downs since we are dealing with the real and open market and so the price of BTC can be a roller-coaster. In addition, to those wondering what is the meaning of seigniorage (https://www.investopedia.com/terms/s/seigniorage.asp), just click on the link I provided.
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Inflation in seigniorage currency poses a serious risk. It is the profit made by the government from issuing currency, which is calculated as the difference between the cost of producing the money and its face value. Especially when it is misused. The risk increases when, historically, seigniorage often leads to inflation, i.e., hyperinflation, and in extreme cases, hyperinflation. In today's global economy, with expanding money supply and increasing debt, these risks are ever-present. Although these risks remain, Bitcoin offers a promising alternative, immune to inflationary pressures due to its decentralized and fixed-supply nature. Bitcoin stays where it is and doesn't get that much inflation. So Bitcoin can create the future of money.
Bitcoin itself most likely not, but what was created after it is possible, cryptocurrency is a very good and honest monetary unit, but still there are those who created it and if we talk about bitcoin, then they mined millions of coins or those who issue new coins or stablecoins, they all have a huge number of coins on hand, there will always be so-called (feudal lords) who will have a huge amount of this money, but still if we consider the prospects for the future, then have something where cryptocurrency appears rather than the endless printing of money as now.
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Most of the economic problems of countries come from inflation, governments want money to spend on state affairs and the easiest way to get money is to print more paper money, whenever governments face new problems they print more money until the time comes when this money becomes worthless.
Bitcoin on the contrary has a fixed number of coins and the quantities released to the market through mining decrease every four years due to the halving where the rewards are halved, this prevents inflation and on the contrary makes the value of the currency increase over time due to scarcity.
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Yes that is right when governments print too much money it can cause big problems like inflation. This has happened before and can make economy unstable. Today with more debt and money being printed these problems are even more likely. Bitcoin is promising solution because it is not controlled by governments.
inflation occurs when the government print more money than the goods and services available increasing their prices this is why when people ask why can’t just the government print more money to pay off debts this is the reason why
as for bitcoin, aside from it is not controlled by any authority or third party its fixed supply contributes to its anti inflationary system which makes it a suitable asset for when inflation occurs
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inflation occurs when the government print more money than the goods and services available increasing their prices this is why when people ask why can’t just the government print more money to pay off debts this is the reason why
If you just got so much money out of nowhere by creating it from thin air, then there are more banknotes circulating which means the value of the currency and a single bank note is devalued as well, and yet there are still governments which think that they can get away with printing more money, especially US since they are a reserve currency.
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Inflation in seigniorage currency poses a serious risk. It is the profit made by the government from issuing currency, which is calculated as the difference between the cost of producing the money and its face value. Especially when it is misused. The risk increases when, historically, seigniorage often leads to inflation, i.e., hyperinflation, and in extreme cases, hyperinflation. In today's global economy, with expanding money supply and increasing debt, these risks are ever-present. Although these risks remain, Bitcoin offers a promising alternative, immune to inflationary pressures due to its decentralized and fixed-supply nature. Bitcoin stays where it is and doesn't get that much inflation. So Bitcoin can create the future of money.
Bitcoin can create a new future, but it cannot replace the fiat system because, like you said, fiat is used by governments for their own purposes. Most citizens don't understand finance, so they aren't aware if their funds are being misused by the government.
Bitcoin is a good option to survive inflation and even hyperinflation-like situations. The USA is printing a lot of money to meet people's needs, and individuals are spending heavily and taking loans from credit cards like it's nothing. The government is providing more loan facilities, and at some point, they might face bankruptcy. This is where financial analysts fear another breakdown, similar to what happened in 2008.
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inflation occurs when the government print more money than the goods and services available increasing their prices this is why when people ask why can’t just the government print more money to pay off debts this is the reason why
Inflation happens when people spend money on more than there is supply!
Govemrnt printing money doesn't automatically trigger inflation, this is Japan's money supply:
https://fred.stlouisfed.org/series/MYAGM2JPM189S
yet Japan has not seen inaltion rates above 3% for 35 years
https://www.macrotrends.net/global-metrics/countries/JPN/japan/inflation-rate-cp
if people don't spend inflation won't happen!
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inflation occurs when the government print more money than the goods and services available increasing their prices this is why when people ask why can’t just the government print more money to pay off debts this is the reason why
Inflation happens when people spend money on more than there is supply!
Govemrnt printing money doesn't automatically trigger inflation, this is Japan's money supply:
https://fred.stlouisfed.org/series/MYAGM2JPM189S
yet Japan has not seen inaltion rates above 3% for 35 years
https://www.macrotrends.net/global-metrics/countries/JPN/japan/inflation-rate-cp
if people don't spend inflation won't happen!
I don't really understand the first statement I underlined from your reply. How do people spend money than the supply of the country?. The thing about inflation is that it doesn't have a single/exact cause to attribute it. Excessive printing is a common factor that causes inflation, and most of us have always known this cause. I don't really know how Japan were able to pull up a good managing skill in sustaining their economy for that long. Or could it be that those money that was printed are just used in replacing the older ones, rather than just pumping them directly into the economy for usage.
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Seigniorage and the risks of inflation, especially when misused, are significant concerns in traditional currencies. With governments expanding money supply, inflation can spiral out of control, even leading to hyperinflation in extreme cases. Bitcoin presents a compelling alternative due to its decentralized system and fixed supply, which makes it resistant to inflationary pressures. As a result, many see Bitcoin as a potential future for money, offering stability compared to fiat currencies subject to inflation.
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Yes that is right when governments print too much money it can cause big problems like inflation. This has happened before and can make economy unstable. Today with more debt and money being printed these problems are even more likely. Bitcoin is promising solution because it is not controlled by governments.
inflation occurs when the government print more money than the goods and services available increasing their prices this is why when people ask why can’t just the government print more money to pay off debts this is the reason why
as for bitcoin, aside from it is not controlled by any authority or third party its fixed supply contributes to its anti inflationary system which makes it a suitable asset for when inflation occurs
that's right. indirectly the government has a big role in influencing inflation. where when they need funds for a state need and print a lot of money then money will indirectly continue to decline
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I believe that inflation is something that no one can eventually stop...and even if the government will resort to price control there can come a time when inflation will eventually roar and soar. There are measures to control inflation - some are effective and some are not - but its effects will eventually come to all of us, the people. There has never been an effective economic system devised by man that can kill inflation...this is just like death and taxes, there is no way to eventually avoid them. Now, with the coming of Bitcoin, we are presented with an alternative form of currency where its total supply is already fixed and no government power can increase it just like what many central banks are doing with the fiat money: printing more money which resulted to more inflation. With the fiat money, there is no way we can increase its value per se as inflation is slowly eating its value over time...on the other hand with BTC there is an opportunity to experience deflationary value. Naturally, this is the way of viewing things straight from A to B but we know that in reality there will always be ups and downs since we are dealing with the real and open market and so the price of BTC can be a roller-coaster. In addition, to those wondering what is the meaning of seigniorage (https://www.investopedia.com/terms/s/seigniorage.asp), just click on the link I provided.
Decentralization is one of the most important thing I have known with a currency like Bitcoin and for me that help us a lot when it comes to inflation because it is not affected by it even governments. This revolutionary currency will protect all kind of people as long as they are into Bitcoin or they embrace the idea of Bitcoin especially as investment. Anyways, Thanks for the link mate.
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I believe that inflation is something that no one can eventually stop...and even if the government will resort to price control there can come a time when inflation will eventually roar and soar. There are measures to control inflation - some are effective and some are not - but its effects will eventually come to all of us, the people. There has never been an effective economic system devised by man that can kill inflation...this is just like death and taxes, there is no way to eventually avoid them. Now, with the coming of Bitcoin, we are presented with an alternative form of currency where its total supply is already fixed and no government power can increase it just like what many central banks are doing with the fiat money: printing more money which resulted to more inflation. With the fiat money, there is no way we can increase its value per se as inflation is slowly eating its value over time...on the other hand with BTC there is an opportunity to experience deflationary value. Naturally, this is the way of viewing things straight from A to B but we know that in reality there will always be ups and downs since we are dealing with the real and open market and so the price of BTC can be a roller-coaster. In addition, to those wondering what is the meaning of seigniorage (https://www.investopedia.com/terms/s/seigniorage.asp), just click on the link I provided.
Decentralization is one of the most important thing I have known with a currency like Bitcoin and for me that help us a lot when it comes to inflation because it is not affected by it even governments. This revolutionary currency will protect all kind of people as long as they are into Bitcoin or they embrace the idea of Bitcoin especially as investment. Anyways, Thanks for the link mate.
In fact, decentralization might be deemed one of the main advantages of Bitcoin. Because it operates on a decentralized basis without obeying any law from a central authority like the government, Bitcoins are less vulnerable to sway in the figure of traditional monetary system which are often manipulated by referent governmental or central bank’s political.
This is as it is supposed to be one of the reasons why many people look at it as a way of acted as a safeguard against the fluctuations in economy. On one hand, it is useful to understand the possible losses before getting involved and to have a proper strategy, on the other hand.
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that's right. indirectly the government has a big role in influencing inflation. where when they need funds for a state need and print a lot of money then money will indirectly continue to decline
That's the bad effect of Fiat and the government doing whatever it takes to make more money with the risk of insane inflation. But of course not with Bitcoin, they can't regulate it, Bitcoin is only available 21 Million and will never increase again, so there will be a scarcity where Bitcoin will continue to be needed in the future and become a digital currency that will not be affected by inflation.
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that's right. indirectly the government has a big role in influencing inflation. where when they need funds for a state need and print a lot of money then money will indirectly continue to decline
That's the bad effect of Fiat and the government doing whatever it takes to make more money with the risk of insane inflation. But of course not with Bitcoin, they can't regulate it, Bitcoin is only available 21 Million and will never increase again, so there will be a scarcity where Bitcoin will continue to be needed in the future and become a digital currency that will not be affected by inflation.
Bitcoin will always outperform the fiat currency. Even if Inflation ends up eating out fiat to a certain level, thereby reducing it's purchasing power, Bitcoin will continue to grow. It's a shame that these government can't embrace their responsibility and do what is right. After borrowing heavily and failing to do the needful, they start printing money to cover up for their mistakes, thereby leaving the citizens to suffer.
Satoshi did a very good job by leaving Bitcoin to the community members to manage. If any government were to be in charge, they might have greedily added more supplies to the current 21million. Bitcoin is clearly unlike the fiat that they can easily manipulate without the citizens knowing.
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Bitcoin will always outperform the fiat currency. Even if Inflation ends up eating out fiat to a certain level, thereby reducing it's purchasing power, Bitcoin will continue to grow. It's a shame that these government can't embrace their responsibility and do what is right. After borrowing heavily and failing to do the needful, they start printing money to cover up for their mistakes, thereby leaving the citizens to suffer.
Satoshi did a very good job by leaving Bitcoin to the community members to manage. If any government were to be in charge, they might have greedily added more supplies to the current 21million. Bitcoin is clearly unlike the fiat that they can easily manipulate without the citizens knowing.
The government only wants to get instant profits and the currency they use must be controllable.
Unlike bitcoin which they cannot fully control. Inflation occurs easily and prints money when they need it.
No matter if the community suffers, it will only subside when there is little money they give to the community.
There are more governments that commit such dirty acts.
There is no manipulation in bitcoin internally, although some price manipulation happens that is only a minor influence.
Bitcoin is decentralized, cannot be regulated by anyone and bitcoin stands on its own quite strongly until now.
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that's right. indirectly the government has a big role in influencing inflation. where when they need funds for a state need and print a lot of money then money will indirectly continue to decline
That's the bad effect of Fiat and the government doing whatever it takes to make more money with the risk of insane inflation. But of course not with Bitcoin, they can't regulate it, Bitcoin is only available 21 Million and will never increase again, so there will be a scarcity where Bitcoin will continue to be needed in the future and become a digital currency that will not be affected by inflation.
Bitcoin will always outperform the fiat currency. Even if Inflation ends up eating out fiat to a certain level, thereby reducing it's purchasing power, Bitcoin will continue to grow. It's a shame that these government can't embrace their responsibility and do what is right. After borrowing heavily and failing to do the needful, they start printing money to cover up for their mistakes, thereby leaving the citizens to suffer.
Satoshi did a very good job by leaving Bitcoin to the community members to manage. If any government were to be in charge, they might have greedily added more supplies to the current 21million. Bitcoin is clearly unlike the fiat that they can easily manipulate without the citizens knowing.
I think considering what monetary policy has done to the economy many are now seeking for some cheaper and inflationary solutions. In this case, Bitcoin arises as one that is stable due to its finite supply. As more nations embrace and reveal information on the usage of blockchain technology, Bitcoin has become a reliable instrument to health by many people to save their money to avoid loss due inabilities and unwise policies that result in inflation.
Government’s failure in managing national debt results in a shift of attention towards fiat currency to digital currencies like Bitcoins. In a decentralized structure, faith is put in a technology, not in a center that can be administered improperly, ineptly or corruptly. This also makes Bitcoin also a more appealing asset that can be invested in for the long-term particularly with the economic instability that affects manufacturing Click countries that mostly resort to printing money as a solution.